PenFed has sent out an e-mail regarding new rewards program rules. On November 1st they are adding a new section to the terms labelled ‘Account Abuse/Misuse and Fraud‘. They provide the following examples of abuse/misuse:
- Using your Account in an abusive manner for the primary purpose of acquiring Points
- Using your Account other than primarily for personal, consumer or household purposes
- Point redemptions that you didn’t authorize
They also provide some examples of actions that can be taken:
- Taking away the Points you earned through abuse/misuse and/or fraud
- Stopping you from earning Points
- Suspending or closing your Account
- Taking legal action to recover Points redeemed because of such activity and to recover our monetary losses, including litigation costs and damages
Our Verdict
Seems like all cardholders are getting these e-mails so I wouldn’t panic if you received one. They do offer a card that earns 5% back on gas, so I imagine that would be the card most would be manufactured spending on. Remains to be seen how strict they will be, but this doesn’t look good.
Hat tip to readers Julian B, T – Diggs & elegua
